Indian equity markets staged a sharp and confident rebound on Thursday as investors reacted positively to the US Federal Reserve’s decision to cut interest rates by 25 basis points.
The move injected fresh optimism into global markets and immediately revived sentiment on Dalal Street, helping the Sensex and Nifty break their three-session losing streak.
The Sensex climbed 426.86 points, closing 0.51 per cent higher at 84,818.13, while the Nifty advanced 140.55 points or 0.55 per cent to settle at 25,898.55.
Market participants interpreted the Fed’s action as a signal of policy support in an environment of persistent inflationary pressures, strengthening expectations of improved liquidity and moderated foreign outflows.
Analysts noted that Nifty now faces a crucial inflexion point. They said the index must post a firm close above the 25,950-26,000 zone to confirm a sustained upward breakout.
Such a move, they argued, could clear the path toward 26,150–26,250, where the upper channel resistance aligns with earlier swing highs. On the downside, technical experts pegged 25,735-25,700 as the critical support band, with a secondary cushion at 25,600.
Indices Reclaim Momentum
Large-cap stocks spearheaded the rally. Tata Steel, Eternal, Kotak Mahindra Bank, UltraTech Cement, Maruti Suzuki India, Sun Pharma, Tech Mahindra and TMPV delivered gains of up to 2.5 per cent, reinforcing strength across cyclical and defensive segments.
But not all blue chips participated: Asian Paints, Bajaj Finance, Axis Bank, Power Grid, ICICI Bank and Titan slipped into the red, signalling selective profit-taking.
Broader markets also displayed resilience. The Nifty Midcap 100 gained 0.97 per cent, and the Nifty SmallCap 100 rose 0.81 per cent, reflecting wider risk appetite and renewed traction beyond frontline stocks.
Sectoral performance revealed a mixed picture. The Nifty Media index emerged as the worst performer, sliding 0.9 per cent, while the Nifty Oil and Gas index closed marginally lower by 0.03 per cent.
In contrast, metal and auto counters drew robust buying interest, pushing the Nifty Metal index up 1.06 per cent and the Nifty Auto index higher by 1.11 per cent. Pharma and Consumer Durables indices also added close to 1 per cent each, reinforcing the day’s bullish undertone.
Market strategists attributed the rally to the cooling of US 10-year Treasury yields following the Fed’s announcement. They said the downward move in US yields hinted at easing pressure on foreign institutional investors, reducing the risk of aggressive outflows.
Sensex, Nifty, Fed rate cut, US yields, market rebound, metals, autos, midcaps, smallcaps, investor sentiment, liquidity, equities.
Also Read: Indian Markets Open Volatile As US Fed Cuts Interest Rate By 25 Basis Points
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